Slide 1: Alstom Presentation March 2017
Alstom Presentation March 2017
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements which are based on current plans and forecasts of Alstom’s management. Such forward-looking statements are by their nature subject to a number of important risk and uncertainty factors (such as those described in the documents filed by
Slide 3: A dynamic market with solid long-term drivers
A dynamic market with solid long-term drivers URBANISATION GOVERNMENTAL FUNDING SUSTAINABLE DEVELOPMENT ECONOMIC GROWTH Market size in 2016/18 Solid growth drivers €51bn Market worth more than €100 bn €31bn Market driven by urban €18bn & integrated systems €10bn Dynamic growth in Asia Pacifi
Slide 4: Activities: a complete range of solutions
Activities: a complete range of solutions Tram, metro, suburban/regional, high speed, very high speed, locomotive Components: traction, bogie, motor 46% Maintenance Modernisation Spare parts, repairs & overhaul 21% Support services Signalling solutions portfolio for: main lines, urban,
Slide 5: H1 2016/17 key figures
H1 2016/17 key figures In € million % change % change H1 2015/16 H1 2016/17 reported organic Backlog 27,719 33,570 21% 22% Orders 3,897 6,212 59% 66% Sales 3,303 3,570 8% 7% Adjusted EBIT 167 200 20% Adjusted EBIT margin 5.1% 5.6% Net income – Group share (57) 128 Free cash flow (1,336) 333 ALSTOM –
Slide 6: An ambitious strategy for 2020
An ambitious strategy for 2020 OUR VALUES TEAM, TRUST & ACTION ETHICS & COMPLIANCE 1 CUSTOMER-FOCUSED ORGANISATION ORGANIC OUR 2 COMPLETE RANGE OF SOLUTIONS GROWTH VISION OUR BOOSTED PREFERRED 3 VALUE CREATION THROUGH INNOVATION PARTNER STRATEGY BY FOR SELECTIVE 4 OPERATIONAL AND ENVIRONMENTAL EXCEL
Slide 7: Customer-focused organisation and multi-local presence
Customer-focused organisation and multi-local presence 31,000 employees working on 105 sites in 60 countries serving 200 customers • Regions: close to customers, in charge of execution EUROPE • Operational functions: AMERICAS 21,250 EMPLOYEES global cohesion, processes and platforms 4,850 MIDDLE E
Slide 8: A complete range of solutions
A complete range of solutions Tramway integrated system for Lusail Sydney metro & signalling Coradia Nordic Bogie in Sweden for Citadis FULLY BUNDLED OFFER INTEGRATED SYSTEM BETWEEN INDIVIDUAL 2 SOLUTIONS SOLUTION COMPONENTS Systems, Signalling and Services to represent around 60% of sales by 2020 A
Slide 9: Staying a step ahead
Staying a step ahead 1 2 3 Boost technical Invest in Optimise innovation to increase competitiveness- customers’ total cost differentiation oriented technology of ownership Citadis X05 Attractis tramway system Coradia maintenance An R&D strategy focused on differentiation and competitiveness Sustain
Slide 10: Operational excellence
Operational excellence Competitive offering • Sourcing • Global footprint Excellence in delivery • Global business transformation underway • Strong project management skills • Flawless execution Production of Citadis Spirit for Ottawa, Hornell (USA) A digitalisation plan to create an agile and
Slide 11: 2020 objectives confirmed
2020 objectives confirmed 2020 OBJECTIVES Sales expected to grow at 5% per year organically Adjusted EBIT margin to reach around 7% c. 100% conversion from net income to free cash flow ALSTOM – February 2016 – P 11 © ALSTOM 2016. All rights reserved. Information contained in this document is i
Slide 12: www.alstom.com
, AEN Se ao. www.alstom.com ALSTOM pean, vies flac
Slide 13: Appendices
Appendices 1 Alstom H1 2016/17 2 Alstom 9M 2016/17 3 Alstom 2020 strategy 4 Alstom 2020 objectives ALSTOM – February 2016 – P 13 © ALSTOM 2016. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is com
Slide 14: Customer-focused organisation: orders
Customer-focused organisation Continued strong commercial performance Orders (in € billion) 3.9 6.2 Strong order intake of €6.2bn 0.3 1.3 +59% Book to bill above 1.7 0.6 2.6 1.0 New record-breaking backlog of €33.6bn 0.8 2.1 1.4 H1 2015/16 H1 2016/17 Europe Americas MEA Asia Pacific 3.9 6.2 1.
Slide 15: Complete range of solutions: sales
Complete range of solutions Organic sales growth of 7% Sales (in € billion) 3.6 5% growth in standalone Trains 3.3 0.7 • Suburban, regional and high-speed trains in Europe 0.8 0.7 (France, Italy, Sweden, etc.) 0.5 0.4 +8% 0.5 • On-going execution of PRASA project 1.6 1.6 • Tramway deliveries in Al
Slide 16: Operational excellence: adjusted EBIT
Operational excellence Continued strong operational performance Adjusted EBIT (in € million) Volume increase Portfolio mix improvement with accretive As % of sales acquisitions On-going initiatives for operational +20% excellence 200 167 5.6% 5.1% H1 2015/16 H1 2016/17 % change reported ALSTOM
Slide 17: Income statement
Income statement In € million H1 2015/16* H1 2016/17 Sales 3,303 3,570 Adjusted EBIT 167 200 Adjusted EBIT margin 5.1% 5.6% Restructuring charges (14) - Other charges (29) (32) EBIT 124 168 Financial result (86) (71) Tax result (2) (32) Share in net income of equity investees 13 47 Minority interest
Slide 18: Free cash flow
Free cash flow In € million H1 2015/16 H1 2016/17 High contribution of operating profit Adjusted EBIT 167 200 Positive evolution of working Depreciation & amortisation 74 69 capital Restructuring cash-out (24) (18) • Several large down-payments Capex (50) (43) • Volatility on short period R&D ca
Slide 19: Capex developments
Capex developments Control of recurring capex Capex* (in € million) Slow ramp up of transformation capex 50 43 H1 2015/16 H1 2016/17 * excluding capitalised development costs South Africa: beginning of site construction New sites to meet customers’ growing demand for a local presence c. €300m tr
Slide 20: Liquidity and gross debt
Liquidity and gross debt In € billion Liquidity position Liquidity 2.7 2.4 €2.3bn cash and cash equivalents as of 30 September 2016 €400m revolving credit facility ; fully undrawn Flexibility with Energy JVs put options Mar-16 Sept-16 Undrawn credit line Gross cash In € million Gross debt Gros
Slide 21: Net cash & equity
Net cash & equity In € million Net cash/(debt) In € million Equity (43) 128 (85) 333 (33) 44 3,415 54 3,328 (203) Mar-16 FCF Acq. & disposals* Forex & other Sept-16 Mar-16 Net income Pensions Forex & other Sept-16 * includes GE related separation impact (e.g. IS&T) ALSTOM – February 2016 – P 21 © AL
Slide 22: Appendices
Appendices 1 Alstom H1 2016/17 2 Alstom 9M 2016/17 3 Alstom 2020 strategy 4 Alstom 2020 objectives ALSTOM – February 2016 – P 22 © ALSTOM 2016. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is com
Slide 23: 9M 2016/17 Orders
9M 2016/17 Orders Orders by region Orders by products (in € million) (in € million) 7,235 7,235 6,255 6,255 9M 2015/16 9M 2016/17 9M 2015/16 9M 2016/17 Europe Americas MEA Asia Pacific Trains Systems Signalling Services ALSTOM – February 2016 – P 23 © ALSTOM 2016. All rights reserved. Information co
Slide 24: 9M 2016/17 Sales
9M 2016/17 Sales Sales by region Sales by product (in € million) (in € million) 5,225 5,225 4,916 4,916 +5% +5% % organic growth 9M 2015/16 9M 2016/17 9M 2015/16 9M 2016/17 Europe Americas MEA Asia Pacific Trains Systems Signalling Services ALSTOM – February 2016 – P 24 © ALSTOM 2016. All rights res
Slide 25: Appendices
Appendices 1 Alstom H1 2016/17 2 Alstom 9M 2016/17 3 Alstom 2020 strategy 4 Alstom 2020 objectives ALSTOM – February 2016 – P 25 © ALSTOM 2016. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is com
Slide 26: Railway traffic evolution
Railway traffic evolution Worldwide traffic evolution from 2007 to 20151 Growth Average growth vs LY (2007–2015) Urban +1.8% +5.3% Mainline Freight +1.6% +4.0% -10.9% -0.2% Passenger traffic for urban & mainline keeps growing, but freight is strongly decreasing 1 Urban traffic figures are for Top 30
Slide 27: Market forecast
Market forecast Average annual accessible market (€bn) 13/15 – 19/21 13/15 – 19/21 CAGR CAGR 101 110 122 +3.2% 101 110 122 +3.2% 11 +3.2% 10 +4.6% 10 9 11 Middle-East Africa 22 +5.4% +4.1% 9 Urban trains 8 9 18 10 Asia Pacific 16 Regional trains 8 7 4 15 +12.1% Mainline trains 13 34 16 31 Freight tr
Slide 28: Share of systems within the urban market
Share of systems within the urban market System market within urban market Share of urban market addressed through systems Annual average 2017-2019 Rest of NAM urban market MEA LAM 43% Metro system Europe 30% Tram system APAC 2013-2015 2017-2019 UNIFE UNIFE (past market) forecast Market addressed th
Slide 29: An ambitious strategy for 2020
An ambitious strategy for 2020 OUR VALUES TEAM, TRUST & ACTION ETHICS & COMPLIANCE 1 CUSTOMER-FOCUSED ORGANISATION ORGANIC OUR 2 COMPLETE RANGE OF SOLUTIONS GROWTH VISION OUR BOOSTED PREFERRED 3 VALUE CREATION THROUGH INNOVATION PARTNER STRATEGY BY FOR SELECTIVE 4 OPERATIONAL AND ENVIRONMENTAL EXCEL
Slide 30: Customer-focused organisation and multi-local presence
1 Customer-focused organisation and multi-local presence 31,000 employees working on 105 sites in 60 countries serving 200 customers • Regions: close to customers, in charge of execution EUROPE • Operational functions: AMERICAS 21,250 EMPLOYEES global cohesion, processes and platforms 4,850 MIDDLE
Slide 31: Strategic acquisitions and partnerships
1 Strategic acquisitions and partnerships Russia - TMH (trains) 2014 Kazakhstan - EKZ (locos) - 25 % additional shares 2010 Kazakhstan - EKZ (locos) UK - SSL (signalling)* Algeria - CITAL (trams) India - Madhepura (locos) 2011 France - Metrolab (R&D) 2015 Sweden – Motala Train AB (se
Slide 32: Case study: Prasa project
1 Case study: Prasa project Scope • Design, manufacture and supply 600 trains for South Africa fleet renewal • Parts supply & technical support for 19 years • Gibela Joint Venture led by Alstom (61%), local factory, 65% average local content Status • First train delivered from Brazil end 2015 •
Slide 33: Case study: eLoco project in India
1 Case study: eLoco project in India Scope • 800 electric locomotives • Associated maintenance: 13 years for the first 250 locos and 4 years for the following 250 • €200m investment incl. set up of manufacturing plant and two depots • JV with Indian Railways (74%/26%) Status • Contract signed in
Slide 34: Case study: NTV in Italy
1 Case study: NTV in Italy Options of previous contract signed in October 2015 4 Pendolino trains and related maintenance services Extension of maintenance services for NTV’s entire fleet from 20 to 30 years Delivery scheduled end 2017 and ready to enter into service in 2018 NTV’s renewed co
Slide 35: A complete range of solutions
2 A complete range of solutions Tramway integrated system for Lusail Sydney metro & signalling Coradia Nordic Bogie in Sweden for Citadis FULLY BUNDLED OFFER INTEGRATED SYSTEM BETWEEN INDIVIDUAL 2 SOLUTIONS SOLUTION COMPONENTS Systems, Signalling and Services to represent around 60% of sales by 2020
Slide 36: Case study: integrated metro system in Dubai for Expo 2020
2 Case study: a fully integrated metro system in Dubai for Expo 2020 link Alstom, leader of ExpoLink consortium 50 Metropolis trainsets and electromechanical works New route extends 15 km and serves Expo 2020 Delivery of the system before 2020 Dubai: Expo 2020 metro station A fully integrate
Slide 37: Case study: Dubai tramway system
2 Case study: Dubai tramway system Scope • Fully integrated tramway solution incl. trains, signalling, infrastructure and 13 years maintenance contract Status: already a success • Availability and punctuality above 99.5% • Robust operation under heavy rain and sand storm • Up to 30,000 passenger
Slide 38: Case study: Riyadh lines 4,5 & 6 metro system
2 Case study: Riyadh lines 4,5 & 6 metro system Scope • 69 driverless Metropolis trains • Signalling system • Infrastructure: third rail and track, using Appitrack and power supply incl. Hesop substations Status • Train production started in Katowice in Nov. 2015 Customer: Arriyadh Development A
Slide 39: Staying a step ahead
3 Staying a step ahead 1 2 3 Boost technical Invest in Optimise innovation to increase competitiveness- customers’ total cost differentiation oriented technology of ownership Citadis X05 Attractis tramway system Coradia maintenance An R&D strategy focused on differentiation and competitiveness Susta
Slide 40: Main innovative programmes
3 Main innovative programmes Complete renewal of the ranges: Avelia range Citadis Spirit, Citadis X05 Coradia iLint New range of standard metro Silicon carbide (SiC) HealthHub Predictive maintenance Atlas, main lines ERTMS Urbalis, CBTC ATO, geolocalisation, 4G Axonis metro sys
Slide 41: Sustained level of R&D
3 Sustained level of R&D R&D* (in € million) Main R&D programmes Renewal of mainline and urban train ranges As % of sales Signalling programmes Predictive maintenance 85 71 2.1% 2.4% H1 2015/16 H1 2016/17 * R&D including externally-funded programmes, excluding capitalisation and amortisation A
Slide 42: Case study: High speed train contract with Amtrak
3 Case study: High speed train contract with Amtrak - US 28 Avelia Liberty trains, new generation of Alstom very high speed trains Optimised maintenance costs Improved energy management Enhanced comfort for passengers A €1.8bn contract: deliveries expected to start in 2021 Avelia Liberty f
Slide 43: Case study: Nice tramway project
3 Case study: Nice tramway project €91m project Awarded in October 2015 Scope 19 Citadis X05 tramway SRS, Static Recharge System Citadis Ecopack Latest generation of tramway for the city of Nice ALSTOM – February 2016 – P 43 © ALSTOM 2016. All rights reserved. Information contained in this doc
Slide 44: Operational excellence
4 Operational excellence Competitive offering • Sourcing • Global footprint Excellence in delivery • Global business transformation underway • Strong project management skills • Flawless execution Production of Citadis Spirit for Ottawa, Hornell (USA) A digitalisation plan to create an agile a
Slide 45: Competitive offering: Sourcing contribution (1/2)
4 Competitive offering: Sourcing contribution (1/2) Integration Body shell 60% of Alstom products cost are Gangway HVAC purchased Interior linings, windows • c.€4bn external supplies Pantograph Doors Electrical Seat harness Bogies Partnership Auxiliary supply • 90 global partners (50% of the spe
Slide 46: Competitive offering: Sourcing contribution (2/2)
4 Competitive offering: Sourcing contribution (2/2) Savings per lever Volume • Bundle approach: different products under one negotiation • Total cost of ownership: improve full product life cycle cost under Low cost one negotiation and protect our margin on after sales 20% countries Design to cost
Slide 47: Competitive offering: Global footprint
4 Competitive offering: Global footprint Worldwide trains manufacturing Bangalore (India) engineering center ramp up FY 14/15 2020 Objective Signalling 2020 Objective Trains Rest of the world 33% Rest Western Western of the world Europe Europe 60% • Rapid growth of global manufacturing and engin
Slide 48: Competitive offering: update as end Sept. 2016
4 Competitive offering: update as end Sept. 2016 Sourcing Global footprint Alstom Alliance India ramp-up • Premium partnerships with strategic suppliers to • 2,300 people as end of September 2016 support geographical expansion, share innovations and mutualise development of key components • Qual
Slide 49: Optimised train product ranges: a platform approach
4 Optimised train product ranges: a platform approach Optimised costs Improved modularity and design Better energy efficiency Urban Mainline Metropolis Citadis Coradia Avelia ALSTOM – February 2016 – P 49 © ALSTOM 2016. All rights reserved. Information contained in this document is indicative
Slide 50: First successes for our new generation of Coradia trains
4 First successes for our new generation of Coradia trains 79 Intercity trains for the Netherlands 150 regional trains for Trenitalia with first operator order of 47 trains €0.8 billion €0.9 billion for the frame contract First deliveries by 2020 First deliveries by early 2019 Optimised layo
Slide 51: Excellence in delivery
4 Excellence in delivery New tools deployment started • Alstom integrated information system massive roll- out launched (10 countries deployed in 15/16) • APSYS, lean manufacturing system extending to Engineering and Project Management Manufacturing execution system • New electrical organisation (
Slide 52: Excellence in delivery: Project management
4 Excellence in delivery: Project management Key practices Results Anticipation before tendering 1. Intense activity • 20 tenders per month Stringent Go / No Go decision • 3 months average per tender Rigorous transfer from tender to project (tender transfer meeting) • c.450 major contracts in
Slide 53: Cash focus programme
4 Cash focus programme Main levers Key practices • Worldwide training (e.g. sales community) Terms and conditions • Upfront review of cash information, • Level of down payment now stabilised from the anticipation phase • Regular meetings during project execution Design to cash actions such as: •
Slide 54: A responsible company
4 A responsible company Ecodesigned & environmental-friendly solutions Alstom sites showcase its commitment Since 2011, Alstom has been included in the Dow Jones Sustainability Indices (DJSI). to safeguarding the environment A culture based on health & safety State-of-the-art spray booths, Kat
Slide 55: Environmental excellence
4 Environmental excellence Improve our environmental footprint • Continue our efforts on energy saving, waste and CO2 ENERGY INTENSITY REDUCTION BY 10% • ISO 14001 for all operational units with more than 200 people Improve energy consumption for solution • Better sizing and energy consumption m
Slide 56: A culture based on diversity & entrepreneurship
A culture based on diversity & entrepreneurship Diversity in terms of gender, generation, nationality, social and cultural background targeted: 25% women in management or professional role by 2020 Training plans, development programmes… ALSTOM – February 2016 – P 56 © ALSTOM 2016. All rights r
Slide 57: The Alstom Foundation to support local communities
The Alstom Foundation to support local communities Support and financing for projects proposed by Alstom employees aimed at improving living conditions of communities local to where Alstom has a presence whilst protecting the environment. ALSTOM – February 2016 – P 57 © ALSTOM 2016. All rights reser
Slide 58: Sharing a common culture of ethics and values
Sharing a common culture of ethics and values Ethics & Compliance (E&C) • Certified procedures • A Code of Ethics and an Integrity Programme applicable to each and every employee around the world Team, Trust and Action ALSTOM – February 2016 – P 58 © ALSTOM 2016. All rights reserved. Information
Slide 59: Organic growth boosted by selective acquisitions
Organic growth boosted by selective acquisitions Small to mid-size acquisitions Support international expansion and strengthen leading positions 2015/16 acquisitions • GE Signalling • SSL, Signalling in UK • Motala Train AB, Services in Sweden ALSTOM – February 2016 – P 59 © ALSTOM 2016. All r
Slide 60: Appendices
Appendices 1 Alstom H1 2016/17 2 Alstom 9M 2016/17 3 Alstom 2020 strategy 4 Alstom 2020 objectives ALSTOM – February 2016 – P 60 © ALSTOM 2016. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is com
Slide 61: Sales evolution
Sales evolution Sales (in €bn) 5% annual organic growth 6.9 6.2 FY 14/15 FY 15/16 FY 16/17 FY 17/18 FY 18/19 FY 19/20 Current backlog of c.€30bn* providing strong visibility on future sales *at 31 March 2016 ALSTOM – February 2016 – P 61 © ALSTOM 2016. All rights reserved. Information contained in t
Slide 62: Progressive margin improvement
Progressive margin improvement Adjusted EBIT margin (in % of sales) Volume/Price Cost absorption driven by solid top-line growth c. 7% Partly offset by price dynamics and competitive Excellence Footprint environment Sourcing 5.0% Portfolio mix Growth towards more profitable activities Servic
Slide 63: Cash conversion objective
Cash conversion objective 2016/17 2017/18 2018/19 2019/20 Short-term impact of legacy cash-out and transformation capex Working capital stabilised Possible volatility on short periods Key focus with strong management actions in place Core free cash flow Legacy cash-out Transformation capex c
Slide 64: www.alstom.com
, AEN Se ao. www.alstom.com ALSTOM pean, vies flac